A game theory approach towards real-time pricing in future electricity markets. (4th March 2021)

• Record Type: Journal Article
• Authors: Kanellou, Eleni; Mastakas, Orestis; Askounis, Dimitrios
• Is Part Of: International journal of decision support systems. Volume 4:Number 3(2021)
• Page Start: 217
• Page End: 234
• Publication Date: 2021-03-04
• Subjects: pricing model -- Stackelberg game -- non-cooperative game -- evolutionary process; Decision making -- Data processing -- Periodicals; 658.40302856312
• Languages: English
• ISSNs: 2050-6988

Abstract

Pricing can be challenging when it comes to energy, as energy pricing models need to consider various different parameters, interactions and decisions. This study aims at introducing a real-time pricing algorithm which attempts to model the interaction between companies and customers as a Stackelberg game, the competition among companies as a non-cooperative game, while the decision-making process of the customers is represented by an evolutionary process. The customer's knowledge of the company production capacities and the companies' knowledge of the customer utility functions are the key assumptions of the algorithm. For the purpose of this research, customers are also assumed to have the right to choose any company that they desire in an hourly basis.